One of my dirty little secrets is that I don’t exclusively hold investment trusts. My SIPP includes two open-ended funds that are extremely popular with many investors: Fundsmith Equity and Lindsell Train Global.
While most investment trusts still trade at a discount, increasing numbers are trading at premiums. Should we buy something that’s reassuringly expensive or be wary in case the price has been driven too high?
I’m a big fan of small-cap investment trusts but one of my holdings, Acorn Income Fund, definitely won’t suit everyone. It’s much more highly geared than your typical fund, adding an extra layer of risk. But this also makes it a good candidate for opportunistic top-ups.
One thing that stirs me from my slumber when it comes to my investment trust portfolio is when there is a change of manager. It doesn’t happen very often, and it typically doesn’t require evasive action, but it does mean that I tend to watch events a little more closely.
There’s been a lot of controversy over the recent introduction of Key Information Documents (KIDs) for investment trusts. In theory, they are designed to standardise the basic fund information that’s available for ordinary investors like you and me. In practice, they’re a bit rubbish.
I last did a portfolio review at the end of 2018, so the end of the first quarter seems like a decent time for another catch-up and some more pithy observations.
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